Manufacturing apprentice and engineering enrolments have remained largely stagnant over the past three years, prompting the South East Melbourne Manufacturers Alliance (SEMMA) to warn that the sector could face continuing skills shortages.
The issue was discussed at SEMMA’s fourth Manufacturing BLUEPRINT forum, EDUCATE, which focused on the skills challenges facing manufacturers now and in the coming years.
SEMMA said recent Australian Bureau of Statistics (ABS) figures show little to no growth in enrolments for manufacturing trades such as sheet metal work and engineering.
SEMMA CEO Honi Walker said the industry needed to better understand what was preventing more young people from pursuing manufacturing careers.
“We need to understand where the obstruction is. What will attract young people into manufacturing? We know it’s smart, secure and sustainable. But do they know it?” Walker said.
She said the focus should be on increasing participation and completion across both apprenticeships and tertiary qualifications, rather than debating different education pathways.
“This is not even about TAFE vs tertiary, it’s about attracting more people to the industry,” Walker said.
SEMMA also highlighted the need for training programs to respond more quickly to changes in manufacturing, particularly as technologies such as artificial intelligence and robotics become more prominent.
The organisation said it works closely with Chisholm Institute and supports faster updates to training packages to reflect industry requirements.
The forum also raised concerns about government policies affecting small and medium-sized manufacturers’ ability to employ apprentices and skilled workers. Walker argued that policy settings should support the broader growth and productivity of Australia’s manufacturing base.
“The wealth and health of economies like Germany have got it right. They base their economics on their local manufacturing industry,” she said, pointing to local production and government procurement as areas where Australia could strengthen its approach.
During the forum, Shadow MP for Skills and Industry Bridget Vallence said the Victorian Liberal Party would seek to reduce payroll tax and land tax.
SEMMA has called for a freeze on payroll tax and the removal of payroll tax from apprenticeship wages. The organisation also wants higher financial incentives for employers hiring apprentices, noting that Victoria currently provides $5,000 compared with a $15,000 wage subsidy offered by the Queensland Government.
Walker said reducing land tax could also help manufacturers invest in equipment and expand their businesses, potentially creating greater capacity to employ apprentices.
“Manufacturing is the engine room of our economy,” Walker said. “We need a war time attitude to re-building our economy and it’s manufacturing that did it then and can do it again – if the governments’ embrace this thinking.”
